In his letter of resignation he condemns both American and rival contra officials for failing to push a major reordering of the rebel movement.
At the same time, he ordered contra officials living in Costa Rica to either leave the rebel movement or leave his country.
The Cardinal held a private meeting with contra officials last month in New York to hear their demands on a cease-fire.
He is one of the few contra officials who didn't cash out with high-paying Government jobs or other perquisites, Mr. Dillon writes.
The Nicaraguan Embassy here today refused to give passports to four contra officials, saying they must first accept a political amnesty.
The fact that a high contra official had executed the archbishop of El Salvador did not diminish the White House's zeal for its fledgling 'democratic resistance'.
Senior contra officials said in interviews that their strategy is to press the Sandinistas as hard as possible for political concessions, while stepping up military attacks.
'Policy Is Crumbling' State Department officials say Mr. Cruz's resignation will give second-echelon contra officials the opportunity to emerge as leaders.
Several contra officials say they were flown by twin-prop passenger plane in late November and December to a training site that many of them assumed was in Florida.
(Mr. Morales later told Congressional probers that he had smuggled drugs in league with contra officials.)